24 Hour Fitness 111 S 38th St 44,647 SF Retail Building Tacoma, WA 98418 $10,250,000 ($229.58/SF) 7.51% Cap Rate
INVESTMENT HIGHLIGHTS
- Corporate Guaranteed Lease: 24 Hour Fitness USA, Inc., a premier fitness chain with over 300 clubs nationwide, guarantees the lease, providing investo
- Extensive Tenant Improvements: 24 Hour Fitness has been a valued tenant since 2018, and invested over $3 million in tenant improvements, demonstrating
- Prime Location: Located in a densely populated area of Tacoma, benefiting from significant daily foot and vehicle traffic. Situated in a neighborhood
- Recent Waiver of Termination Right: 24 Hour Fitness had a once time option to terminate their lease in September of 2024. They waived this right highl
- Built-in Inflation Protection: Future ownership will benefit from 10% rent increases every five years, offering a hedge against inflation and consiste
- Minimal Landlord Responsibility: Operating under a Triple Net (NNN) lease, 24 Hour Fitness assumes nearly all property expenses, including taxes, insu
EXECUTIVE SUMMARY
The Verger Team is pleased to present a rare opportunity to acquire a Corporate Leased Single-Tenant NNN 24-Hour Fitness with over 13 years remaining on the lease.
In 2018, 24 Hour Fitness invested $3M in tenant improvements and recently waived their one-time right to an early termination, solidifying their long-term commitment to the property and showcasing their confidence in the location.
Strategically located on S 38th St, Tacoma’s primary retail corridor, the property is surrounded by national retailers like Costco, Target, and Walgreens. Its proximity to major highways, including Hwy 16 and I-5, ensures high visibility and ease of access, positioning this asset for long-term success.
In 2018, 24 Hour Fitness invested $3M in tenant improvements and recently waived their one-time right to an early termination, solidifying their long-term commitment to the property and showcasing their confidence in the location.
Strategically located on S 38th St, Tacoma’s primary retail corridor, the property is surrounded by national retailers like Costco, Target, and Walgreens. Its proximity to major highways, including Hwy 16 and I-5, ensures high visibility and ease of access, positioning this asset for long-term success.
PROPERTY FACTS
Sale Type
Investment
Property Type
Retail
Property Subtype
Building Size
44,647 SF
Building Class
B
Year Built/Renovated
2003/2017
Price
$10,250,000
Price Per SF
$229.58
Cap Rate
7.51%
NOI
$769,524
Tenancy
Single
Building Height
1 Story
Loading Docks
1 Exterior
Building FAR
0.28
Lot Size
3.67 AC
Parking
110 Spaces (2.46 Spaces per 1,000 SF Leased)
Frontage
290’ on S 38th St
AMENITIES
- Bus Line
- Signage
MAJOR TENANTS
- TENANT
- INDUSTRY
- SF OCCUPIED
- RENT/SF
- LEASE END
-
- Arts, Entertainment, and Recreation
- -
- -
- -
Celebrating over 35 years as an industry leader, 24 Hour Fitness is committed to creating a healthier, happier world through fitness with clubs nationwide. They know your time in the gym is critical to maintaining your physical and mental well-being, so they provide welcoming and inclusive environments, with thousands of square feet of premium strength and cardio equipment, turf zones, free weights, functional training areas, and more. Studio and cycle classes, personal training, and innovative digital and virtual offerings are all available options to help you keep your mind and body fit, so you can reset your next 24 hours and be prepared for what’s next.
| TENANT | INDUSTRY | SF OCCUPIED | RENT/SF | LEASE END | ||
|
|
Arts, Entertainment, and Recreation | - | - | - |
Walk Score®
Very Walkable (73)
NEARBY MAJOR RETAILERS
PROPERTY TAXES
| Parcel Number | 747002-1611 | Improvements Assessment | $7,939,200 |
| Land Assessment | $2,845,900 | Total Assessment | $10,785,100 |
